BlackRock CEO Larry Fink is asking leaders of the world's biggest companies to say how they'll spend extra cash from the U.S. tax overhaul.
“What will you do with increased after-tax cash flow, and how will you use it to create long-term value?” Fink said in his annual letter to CEOs, posted on the asset management company's website Tuesday. Companies have a responsibility to explain to shareholders how “major legislative and regulatory changes” will impact their long-term growth strategies, Fink said.
Companies including BlackRock are expected to benefit from changes in the U.S. tax plan. The world's largest asset manager will see its effective tax rate fall to 23% from about 31%. BlackRock plans to use money from the tax break potentially for share buybacks and to pay out dividends, it told shareholders on a Jan. 12 earnings call.
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